Qualcomm on Thursday sent a new open letter addressing its shareholders and accompanied it with a video that can be seen below, with both urging investors not to participate in Broadcom's attempted coup of the chipmaker's board. Replacement directors wouldn't impact the board's overall "openness to a transaction that makes sense" for the shareholders, Qualcomm wrote, asking its investors to use the white card to re-elect its existing eleven directors at the company's annual stockholder meeting scheduled to take place on March 6. Broadcom recently revised its attempted coup of the board by reducing the number of its candidates from eleven to six, seeking to win the majority of the body while still maintaining some continuity within Qualcomm's senior leadership ranks, according to its official statement on the matter.
Following the initial $104 billion bid launched in early November, Broadcom upped its offer to $121 billion in February, only to lower it by $4 billion earlier this week, slashing it by approximately the same sum Qualcomm added to its NXP Semiconductors bid that's now valued at $44 billion. The tensions between the two are still relatively high and an agreement seems unlikely less Broadcom manages to win the control of Qualcomm's board early next month, hence installing its own nominees willing to vote to sell the company. The San Diego, California-based tech giant's latest letter to shareholders reiterates some of its previous points about the proposed merger, claiming the offer materially undervalues its business by a significant margin and poses an immense risk to the firm due to its ability to destabilize its operations by subjecting them to lengthy antitrust reviews across the globe.
Broadcom remains adamant it can conclude the deal in twelve months which Qualcomm repeatedly deemed a highly unrealistic promise. The lowered bid for the company made an "inadequate offer even worse," the chipmaker said earlier this week. The proposed tie-up could lead to by far the largest consolidation in the technology industry's history, dwarfing Dell's 2015 acquisition of EMC valued at $67 billion. Most industry analysts remain reluctant to predict the outcome of the March 6 vote, with both parties seemingly enjoying significant support and consistently becoming increasingly aggressive in their communication with the opposing side.